Used equipment market cooling down?

BobC · « **on:** 2 Jun 2006, 05:22 pm »

This is just a gut feel...so please don't ask for specifics...but I'm getting the impression that the used (sorry, pre-owned

) audio equipment market could be cooling down a little. Seems like I see a lot of good stuff sit for a long time, and even have prices reduced several times before sale. (a lot of good Odyssey stuff on Audiogon now) Perhaps people are saving their money waiting for new technology (Blu-Ray / HD DVD?) ...or perhaps sellers are optomistic in their pricing.

Anyone else get this impression?

I like the idea of my stuff holding its value and have bought several used items, so I hope the market stays healthy.

Thoughts?

chadh · « **Reply #1 on:** 2 Jun 2006, 06:40 pm »

I've actually had the opposite feeling (although my impression may come from a different segment of the market).

I bought some gear three years ago, and have sold a lot of it on audiogon over the past few months (my first real foray into any market for pre-owned goods). I watched prices for comparable items, I provided lots of pictures, I rated my items conservatively, and on every single item I received offers that resulted in a sale within 12 hours of posting an ad.

Obviously, I priced too low. But it didn't seem that my prices were that low, expecially considering the discounts one is usually able to get below MSRP.

For example, one item I bought for $640 when its MSRP was $1000. Three years later the MSRP was $1100. I rated the item an 8, and listed it at $600 plus shipping. I sold it within 24 hours. The guy who bought it was obviously an arbitrageur, as he listed it again within two weeks, rated it a 9, and asked for $750. He had a sale pending within a couple of days.

Things are even more extreme at Head-Fi, where it seems people regularly list used items (especially headphones) at around 90% of MSRP. Granted, many people there seem to hold onto things for relatively short periods, but I would still expect more depreciation than that (especially on something like headphones).

Maybe things are different with more expensive items. But I was quite surprised at how lucrative the used market was (although a little disappointed that I couldn't take greater advantage of it).

Chad

BobC · « **Reply #2 on:** 2 Jun 2006, 06:53 pm »

Hmm...good to know. Perhaps my observation is influenced by modified or "upgraded" items where the MSRP / blue book value is not clear and people want to get their money back.

Which leads me to ask another question...are mods worth it? Guess you'd have to realize that you won't get your money back when sold and most of the expense is going toward only your enjoyment of the incremental improvements (if that makes sense

)

chadh · « **Reply #3 on:** 2 Jun 2006, 07:47 pm »

One of the items I sold recently was modified, and I thought a little about this issue. My feeling was that the used market was probably prepared to pay for modifications, especially if they were well known and appreciated. However, the problem is that many modifications tend to be applied to products that are fashionable. So that when the next best thing comes along, these modded units are hard to move.

Take the modded ART DI/O, for example. A few years ago, they were the cats pyjamas. And people like Wayne produced awesome modifications for them. So you could pay a little for the unit, a reasonably small amount for the mods, and you'd have a killer DAC for not much cash. And it's still a killer DAC. But if you try to sell one of these units now I think you'll take a big hit, not because it's modified, but because there's something new that has grabbed everyone's attention (whether it's a Squeezebox, or an Olive, or a DAC 60 or whatever). This risk is there with every hot, new item. BUt I think hot, low-priced, new items are the ones most likely to be modified. I'm sending Wayne my SB2 soon for some mods. In a couple of years, though, I don't imagine it will be worth much on the second hand market.

On the other hand, if you have a well respected, tried and true amplifier that has been around for years, and you can get an upgrade by replacing some caps or whatever, I bet you wouldn't face much downside risk. Some manufacturers have gone out of business, but their products are still resold thanks to the modifiers and upgraders who maintain the value of well-respected, high quality products (e.g. Melos amplifiers).

Chad

BobC · « **Reply #4 on:** 2 Jun 2006, 08:04 pm »

All good points and well stated.

bunky · « **Reply #5 on:** 2 Jun 2006, 08:59 pm »

Quote from: BobC

All good points and well stated.

i think that the trend is that during warm weather months sales slow quite a bit. folks tend to be spending much more time enjoying the outdoors and not indoors listening to audio nearly as much as they would during the cold weather months.thanks....WCW III

MaxCast · « **Reply #6 on:** 3 Jun 2006, 02:55 am »

I think Odyssey's resale value is above the norm. The norm being 50%. There are a few manufacturers that get above the 50% on audiogon and Odyssey is one of them.

kfr01 · « **Reply #7 on:** 3 Jun 2006, 03:44 am »

First few weeks of nice weather in the middle of the country... People here in Wisconsin seem to be spending their weekends on yard work, on bike trails, with family, etc. I expect the same is happening all over. Home depot is getting the dollars, not audiogon.